How do factoring companies fund their purchases?
MarkB subscriber Posts: 2
edited July 2007 in Startup Funding
Does anyone know where a factoring company comes up with the funds to purchase another company`s receivables?Kind of a broad question, I know. Any help is appreciated.Thanks,Mark Bebout
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Excellent summary. Thanks for the information.
Robert jrobertj2007-7-19 11:40:55
You may want to check your state banking laws. Commercial financing is a regulated activity. In your state, you quite likely might not be able just "assume" the role of broker. You may need to be duly licensed in order to legally do so.